The Irish Internet economy will grow to more than €5 billion by 2003, representing a 15-fold increase over three years, according to a new report by Amarach Consulting.

The report, "Recruitment's eVolution", commissioned by recruitment specialists Mitchell James, predicts that the number of people employed in e-business will triple to 35,000 people in that time. Currently, 15 per cent of Irish Internet users make purchases valued at €75 million over the Internet, while 19 per cent of Irish businesses conduct transactions worth €250 million via the Internet.

Amarach expects that, in 2003, 32 per cent of Irish Internet users and 64 per cent of all Irish businesses will spend €1.1 billion and €4.2 billion respectively on purchases on the Web.

Of the 35,000 employed in e-business, 11,000 will be engaged with Internet infrastructure and access providers, including ISPs and telecommunications companies, while 9,000 will be working with Internet application providers, including consultants, Web software providers and multimedia groups. Internet service providers, including online travel and advertising agencies, and online brokerages will employ 5,000 people, while Internet businesses such as e-tailers, e-banks and subscription services will employ 10,000.

Mr Gerard O'Neill of Amarach said Irish businesses were leading the way in adoption of the Web, with 72 per cent having different types of access to the Web. Twenty-six per cent of companies have websites.

By 2004, Amarach predicts one million people will be using the Internet in Ireland, up from 679,000 this year, and Mr O'Neill said this represented a massive domestic market. Currently, 13 per cent of all adults access the Web from home, with 10 per cent gaining access at work and a further 5 per cent at school or college.

One of the main barriers to Irish people using the Internet is psychological, with 37 per cent of people citing fears over a lack of security, a lack of trust in the Web and the danger of theft of their details.

Three in 10 Irish people worry about the security of e-mails they send and receive. Eight in 10 would prefer to use a completely secure e-mail service, and half of those would be willing to pay to have such a service.

One-fifth of people said they did not use the Web because they believed there was a lack of useful services for them on it.